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2. NTK Inc. considers the following two mutually exclusive projects Year Project A Cash Flow Project B Cash Flow 0 -$5,000 -$5,000 1 200

2. NTK Inc. considers the following two mutually exclusive projects Year Project A Cash Flow Project B Cash Flow 0 -$5,000 -$5,000 1 200 3,000 2 800 3,000 3 3,000 800 4 5,000 200 At what cost of capital will the NPV of the two projects be the same (i.e. the cross-over rate)? Make sure you show how you get the answer (6 points)

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